Great Reading This Week…

• Tweet

• Tweet

Here are this week’s uncommon insights to the financial world. This is fascinating educational reading, but I would encourage you to make sure no razor blades are nearby…

The New York Times provides an unusual analysis concerning the problem the U.S. Government faces if it tries to inflate its way out of the current debt problem. Essentially, their hands are tied because 90% of the debt obligations are either implicitly or explicitly indexed to compensate for inflation. If the authors are even remotely correct with their analysis it would mean the “inflation solution” to our debt problems is off the table. That is an amazing concept with implications I still have not wrapped my head around.

Porter Stansberry penned an interesting postfor conspiracy theorists that you will likely hear much more about in the months to come. Apparently Darrell Isa, who serves on the House Committee For Oversight and Government Reform, has uncovered a potentially fraudulent situation in the already ugly relationship that existed between Goldman Sachs, AIG, and our beloved bank bailout money.

On a personal note, I’ve never made any secret that I dislike the bank bailouts (handouts), and I dislike Goldman Sachs’ business practices and infiltration of government even more. In my humble opinion, the bank handout was a massive rip-off to us taxpayers. My intuition is seldom wrong but almost always early, and I believe something smells very bad. I believe it is just a question of time until the self-dealing that occurred is revealed for the true swindle that it was. I’ll keep you posted as I learn more…

While I’m on my soapbox, one of my pet-peeves in the financial world is when people confuse value investing, Warren Buffett, and the buy and hold investment strategy. Warren Buffett is often represented by the media as the poster boy for buy and hold when in fact his investment strategy is not buy and hold, barely qualifies as straight value investing, and is actually closer to a hedge fund style than either of the other alternatives. Pragmatic Capitalist provides an insightful commentary that illustrates many of these ideas.

Also, I want to announce that I will publishing my next ebook, The Buy and Hold Myth, very soon. I’m writing it as we speak. Best of all, I will be giving each and every one of you, my beloved readers, free excerpts so make sure you spread the word about all the cool stuff you get with your subscription.

Until next week…